KARACHI: Stocks managed to make a breakthrough on Wednesday when the KSE-100 index recovered 295 points (or 0.80 per cent) to close at 38,820.

Early in the session, the index made the intraday high by 360 points. Investor sentiments were buoyed by the apparent stability in the foreign exchange market, which triggered value buying.

Market participants also sounded optimistic about the political situation as the prime minister was expected to address matters pertaining to reforms in the Federally Administered Tribal Areas in his meeting with parliamentary leaders on Friday.

The volume was down 40pc over the earlier day to 118 million shares as investors stuck to the sidelines in the wake of a weaker rupee and technical triggers.

Volume leaders were second-tier stocks. The value slipped 38pc to Rs8.68 billion. Foreign investors sold equities worth $2.77m while local participants, except individuals, were net buyers.

Top index-point leaders, according to Topline Securities, were MCB Bank, which went up 2.6pc, Engro Fertilisers 3.4pc, Engro Corporation 1.6pc, Sui Northern Gas Pipelines 4.4pc and Dawood Hercules 2.4pc, adding 134 points to the index.

Oil and Gas Development Company lost 1.2pc, United Bank 0.7pc, Habib Bank 0.4pc, J.D.W. Sugar Mills 5pc and International Steels 1.9pc, taking away 62 points from the index.

Sector-wise, fertiliser add­e­d 93 points, banking 46 points, oil and gas marketing 34 points and cement 29 points. Pakistan Oilfields declined 0.1pc while Pakis­tan Petroleum went down 0.1pc. Moreover, investors’ interest was seen in Engro Corporation and Sui Southern Gas Company, which went up 3.6pc, as Engro Elengy Terminal signed a supply agreement with the gas utility.

Furthermore, interest was seen in independent power producers (IPPs). Hub Power gained 0.3pc while Kot Addu Power went up 1.1pc on the back of the news that a Senate body directed the Power Division to resolve the payment issue of Rs32.45bn to IPPs.

Published in Dawn, December 14th, 2017